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UPDATE 1-Tinpo withdraws offer to buy Western Prospector
October 1, 2008 / 3:05 PM / 9 years ago

UPDATE 1-Tinpo withdraws offer to buy Western Prospector

(Recasts, adds details)

Oct 1 (Reuters) - Tinpo Holdings Industrial Co Ltd withdrew its offer to acquire Western Prospector Group Ltd WNP.V, saying it became aware of an unpublished resolution instructing the Mongolian government to explore the full nationalization of the country’s uranium industry.

As of December 31, 2007, Western Prospector held six coal exploration licenses in four different regions of Mongolia.All the company’s mineral properties are located in Mongolia.

Tinpo said it remains interested in Western Prospector and “hopes the situation in Mongolia will evolve in a way that would permit a transaction to occur in the future.”

Separately, Western Prospector said Tinpo had no right to withdraw the offer and that it plans to vigorously pursue all of its rights and remedies against Tinpo.

Tinpo Holdings had offered C$1.34 per share for Western Prospector, valuing the company at C$74 million ($70.01 million), topping an earlier offer made by Khan Resources Inc KRI.TO.

Tinpo Holdings’ offer was set to expire on Sept. 30. As of Sept. 26, about 73 percent of Western Prospector’s shares were tendered, representing a support for the deal.

Western Prospector’s shares, which have risen about 30 percent so far this year, closed at C$1.30 Tuesday on the Toronto Venture Exchange. Trading in the stock was halted Wednesday morning.

$1=1.057 Canadian Dollar Reporting by Chakradhar Adusumilli in Bangalore; Editing by Deepak Kannan

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